When must a Crowne Plaza licensee submit materials for the offer or sale of securities to IHG for review?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
eath or mental incompetency of Licensee or any natural person with a Controlling Equity Interest in Licensee, such interest may be transferred in accordance with and subject to the terms of paragraph 9.F., provided that: (i) any such Transfer will be made within six (6) months of the date of death or mental incompetency, (ii) the obligations of Licensee under this License are satisfied pending the Transfer, and (iii) the Hotel will be continuously operated by Licensee or a management company approved by IHG.
E. Registration of a Proposed Transfer of Equity Interests.
Any public offering, private placement or other sale of securities in or by Licensee or the Hotel ("Securities") requires IHG's consent. All materials for the offer or sale of those Securities disseminated to any prospective purchaser thereof, filed with any governmental or quasigovernmental entity or intended for distribution to any form of media must be submitted to IHG for its review at least sixty (60) days before the date Licensee disseminates or distributes those materials or files them with any governmental agency, including any materials to be used in any offering exempt from registration under any securities laws. Licensee must submit to IHG a non-refundable Twenty-Five Thousand Dollar ($25,000) processing fee with the offering materials and pay any additional costs IHG may incur in reviewing such materials, including reasonable attorneys' fees. Except as legally required to describe the Hotel in the offering materials,
Licensee may not use any of the Marks or otherwise imply IHG's participation or that of its Affiliates, or any of their respective officers, directors, members, managers and employees in such offering or its/th
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, a licensee must submit all materials related to the offer or sale of securities to IHG for review at least 60 days before disseminating or distributing the materials. This includes materials disseminated to prospective purchasers, filed with governmental entities, or intended for distribution to any form of media.
This requirement ensures that IHG has ample time to review the materials for compliance with their brand standards and legal requirements. The licensee must also submit a non-refundable $25,000 processing fee with the offering materials and cover any additional costs IHG incurs during the review, including reasonable attorney's fees.
Crowne Plaza also maintains the right to approve any description of the license or the licensee's relationship with IHG, as well as any use of the brand's trademarks, within the offering materials. However, IHG's review does not imply agreement with any statements, projections, or compliance with applicable laws within the documents. This process is in place to protect IHG's brand and reputation while ensuring that potential investors receive accurate information, and that IHG is not held liable for the sale of securities by the licensee.